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Related: Culture Forums, Support ForumsCottage rental questions.
My 94 yr old mom and I are co-owners of a small cottage on one of the Finger Lakes in upstate NY. We have done some word-of-mouth rentals since 2012, attempting to defray some of the taxes so we can afford to keep it in the family. That worked well until last year. We met today with a vacation rental agency, who felt the place would be very "rentable." So far, so good.
Not so much. I nearly fainted when the owner of the agency said the property owner only gets 15% of the rent charged to customers. From previous investigations, I had been under the impression that the agent usually took about 18%.
Anybody have any experience with transactions of this nature? I was totally shocked, as well as disappointed. If the agency takes 85%, what would be the point?
Smarmie Doofus
(14,498 posts)Got any pics?
You'll get more than 15%.
dixiegrrrrl
(60,010 posts)Someone is trying to take advantage of you, methinks.
And if you do sign with an agency, be sure the contract says they get paid ONLY if the cottage is actually rented.
Tobin S.
(10,418 posts)mnhtnbb
(31,404 posts)If you are in a desirable area for vacation rentals, you may make a LOT more by handling the rentals yourself--or even paying
someone you trust in the area to manage it.
https://www.vrbo.com/
Also post it on flipkey--which is run by tripadvisor.
https://www.flipkey.com/
Posting it in on-line vacation rental resources will get you a lot more inquiries than just word of mouth.
You might want to try that before you go the agency rental route.
we can do it
(12,194 posts)TexasBushwhacker
(20,214 posts)we can do it
(12,194 posts)No one said you are a pig, but there are no checks with VRBO to even see if the person(s? ) applying are who is showing up. Having a rental agent who screens tenants is better, still not perfect.
TexasBushwhacker
(20,214 posts)For the times I rented, I had picked up the keys from the owners themselves. I have a friend who rents out a riverside cottage in the hill country who also meets their guests in person.
3catwoman3
(24,045 posts)...in person is not an option. My 94 yr old mom lives 90 minutes away, and can't drive there at the beginning and end of every rental. I live 700 miles away. There are a couple of trusted neighbors, but they are in and out a lot, so I could not expect them to arrange their lives around our need for a renter to get keys.
We would love to meet guests in person, but it is just not doable. The first 2 years we did it on our own, my mom would come down before every rental and leave home-baked cookies. It bothers her enormously that she can't do that anymore.
We've made it quite clear to the agency that there can be no smoking, no pets, and no frat/sorority/prom/graduation parties. The cottage sleeps 6 easily, and 8 if someone is willing to use a pull out couch.
There is a ton of renting that takes place in the Finger Lakes, so it must work out well enough for most people on both ends of the transaction.
TexasBushwhacker
(20,214 posts)Just make sure they earn it.
3catwoman3
(24,045 posts)I was just about to e-mail the rental agency woman to tell her that this was not going to be financially worth it, when I got a call from her. She'd had a colleague with her who must have noticed a WTF look on my face, and told the agent, "You'd better call her back. I think there was a miscommunication about who gets what."
To say the least. It turns out the agency gets the 15% and my mom gets the 85%. That's more like it. I know that is not what she said, because my mom heard it the same way I did. That's more like it.
I do know about VRBO, but, thus far, am not tech savvy enough to create an on-line brochure. My 23 yr old son probably is. I am also something of a procrastinator, which would not be good when trying to run an on-line business.
I figure I will try this for a season, and see how it goes.
Thanks to all who responded. I knew I could count on some words of wisdom from DUers.
elleng
(131,107 posts)3catwoman3
(24,045 posts)...face. My job requires this. I'm a pediatric nurse practitioner, and even after a nearly 40 year career, there are still, occasionally, parents who tell me things that make me want to shout, "What the hell were you thinking?!"
Apparently, the mask slips from time to time -
elleng
(131,107 posts)I've often admired medical professionals for their straight faces. OK that it slipped this time, as it was actually valuable toward your goal.
whistler162
(11,155 posts)TexasBushwhacker
(20,214 posts)to rent out a riverside cabin in the Texas Hill Country. She's very happy with it.
TuxedoKat
(3,818 posts)who rent in the area? I would ask them if/who they use as a rental company and how they like them. My mom has used various ones for years for an ocean front condo she owns. I don't remember what percentage her agency gets, but it is something like 10-15% commission. It's a good deal, they find the tenants, handle the cleaning and necessary repairs and mail her the checks.